Kaiser Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the upcoming year appear below: The predetermined overhead rate for the recently completed year was closest to:
A)$6.68
B)$25.02
C)$25.59
D)$18.34

Question

Kaiser Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the upcoming year appear below:  The predetermined overhead rate for the recently completed year was closest to:
A)$6.68 
B)$25.02 
C)$25.59 
D)$18.34

Quizplus · Accepted Answer

Estimated total manufacturing overhead = $1,283,800 + ($6.68 per machine-hour F1F1F1S1F1F1F10 70,000 machine-hours)= $1,751,400
Predetermined overhead rate = Estimated total manufacturing overhead F1F1F1S1F1F1F10 Estimated total amount of the allocation base
= $1,751,400 F1F1F1S1F1F1F10 70,000 machine-hours
= $25.02 per machine-hour

Kaiser Corporation Bases Its Predetermined Overhead Rate on the Estimated